What are the consequences of eliminating wholesalers from the chain of distribution?

[Stardom22]

Manufacturers will be forced to open up additional distribution outlets which might increase their costs thereby lowering their profits.

 

[Magnus2022]

It is actually not possible to eliminate wholesalers in distribution chain. Wholesalers is the medium in which retailers and producers interact and exchange ideas.

 

[Shavkat]

I think eliminating will be a problem in terms of business principle. It is one of the factors that makes the business works.

 

[flower]

If you eliminate the wholesaler from a chain of distribution , then it is definitely going to affect the productivity of the business.

 

[Niyi Briggs]

There is absolutely no advantage to that kind of action. They are the people who have the capacity to buy in bulk. And any production needs that turnover.

 

[eldavis]

If there is no wholesaler, then the goods or products would not be able to reach the retailers, which means the final consumers won't be able to have access to these products, which would bring about loss to the manufacturers.

 

[Stardom22]

I think when the wholesalers are eliminated out of the market, the products may go directly to the retailers from the distributors. The main disadvantage for this move is that the retailers would spend more capital to buy in larger quantities as distributors sells in bulky.

 

[Niyi Briggs]

From a producer's point of view, it would make the producer to have more profit if the final consumers buy directly from them.

 

[IB D]

I have never liked the idea of middlemen in business. They have powerful unions that they use to exploit the manufacturers. When a manufacturer can eliminate middlemen, he makes more profits than he should.

 

[Stardom22]

I have never liked the idea of middlemen in business. They have powerful unions that they use to exploit the manufacturers. When a manufacturer can eliminate middlemen, he makes more profits than he s

That's very true. Most problems arising in the business sector in terms of the prices and even logistics are caused by the middlemen on the chain of distribution in the matter of fact.

 

[Etini Willie]

The cost of selling from manufacturer to customers directly is lower than having to use middleman. That is because the middlemen would want to charge you a commission for each unit of your product sold.

 

[astutimeliana723]

If there are no wholesalers in the distribution chain, it will be difficult for factories to distribute their products. It would be impossible for manufacturers to ship to individual retail stores, which would be time-consuming and ineffective.

 

[capri]

If wholesalers are eliminated from a supply chain, customers enjoy a potential benefit of lower product prices.

A local company that manufacturers building materials has actualized these benefits by selling to customers directly. This company charges less than retail outlets do.